MRK Holdings, Inc. (9980) AI Stock Analysis

• Market Cap: ¥13.78B
• Dividend Yield: 1.05%
• Average Volume (3M): 522.25K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.60
• Revenue Growth: 6.19%
• EPS Growth: 79.98%
• Country: JP
• Employees: 1,788
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 5.77
• Shares Outstanding: 101,295,074
• 10 Day Avg. Volume: 294,200
• 30 Day Avg. Volume: 522,246
• PEG Ratio: 2.47
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 5.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥150.00 ▲(63.04% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by solid financial foundations (strong gross margins and low leverage) alongside a relatively low P/E. This is tempered by weak bottom-line profitability (low net margin and ROE) and technically stretched momentum signaled by an elevated RSI, which increases near-term downside risk.

Positive Factors

High gross margin & revenue growth

Sustained 8% revenue growth with a 74.6% gross margin indicates durable product or portfolio pricing power and efficient direct cost control. Over 2–6 months this supports reinvestment capacity, margin resilience against input shocks, and longer-term ability to fund expansion or portfolio initiatives.

Prudent balance sheet, low leverage

Very low leverage and a high equity ratio provide financial flexibility to pursue strategic investments or weather downturns without stressing interest coverage. This structural strength preserves optionality for M&A, partnerships, or capital returns over the medium term.

Free cash flow turned positive

Conversion to positive free cash flow and a strong operating-CFO to net income ratio demonstrate improving cash generation. This durable improvement increases capacity to fund operations, reduce leverage, or invest in subsidiaries without relying on external financing.

Negative Factors

Thin net margin and low ROE

Very low net margin and ROE show the company struggles to translate high gross margins into shareholder returns, implying structural overhead, tax, or non-operating pressures. Persistently weak bottom-line profitability limits ability to sustainably increase equity returns or dividends.

Modest operating profitability

Low EBIT/EBITDA margins despite strong gross margin suggest elevated SG&A or other operating expenses that erode scalability. If fixed costs remain high, future revenue growth may not translate proportionally into operating profit, constraining long-term earnings leverage.

Lower free cash flow conversion

A relatively low FCF-to-net-income ratio indicates earnings are not yet efficiently converted into spendable cash, limiting sustained reinvestment and capital returns. Structural cash conversion gaps can pressure funding for capex, acquisitions, or shareholder distributions.

MRK Holdings, Inc. Business Overview & Revenue Model

Company Description

MRK Holdings Inc. engages in the maternity and baby related business in Japan. The company offers maternity wear, nursing clothes, maternity innerwear, baby wear, and baby gifts. It is also involved in the body makeup, beauty, and wedding and banquet related businesses. The company was formerly known as Maruko Co., Ltd. and changed its name to MRK Holdings Inc. in October 2018. MRK Holdings Inc. was incorporated in 1978 and is headquartered in Osaka, Japan. MRK Holdings Inc. operates as a subsidiary of RIZAP GROUP, Inc.

How the Company Makes Money

MRK Holdings generates revenue through a multi-faceted model that includes strategic investments in subsidiary companies, joint ventures, and partnerships in key sectors. The company earns income from equity stakes in its subsidiaries, which provide dividends and profit-sharing arrangements. Additionally, MRK Holdings engages in licensing agreements and technology transfers, allowing it to monetize its proprietary innovations. The firm also benefits from consulting services, where it advises other businesses on operational efficiencies and market strategies. Key partnerships with industry leaders further enhance its revenue potential by expanding market reach and facilitating collaborative projects that drive mutual growth.

MRK Holdings, Inc. Financial Statement Overview

Summary

Strong revenue growth (+8.0%) and very high gross margin (74.6%) support fundamentals, and the balance sheet is healthy with low leverage (debt-to-equity 0.10; equity ratio 72.4%). Offsetting this, profitability is thin (net margin 1.2%, ROE 1.7%) and cash flow, while improved (FCF turned positive), still trails the stronger operating cash conversion.

Income Statement

MRK Holdings, Inc. has demonstrated consistent revenue growth with a 8.0% increase from 2024 to 2025. The gross profit margin remains strong at 74.6%, indicating efficient cost management. However, the net profit margin is relatively low at 1.2%, suggesting limited profitability after expenses. EBIT and EBITDA margins are modest at 2.2% and 6.0% respectively, reflecting operational challenges.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.10, indicating prudent leverage. The equity ratio is robust at 72.4%, showcasing strong asset backing by equity. Return on equity is modest at 1.7%, reflecting moderate profitability relative to shareholder investment.

Cash Flow

MRK Holdings, Inc. has shown improvement in free cash flow, turning positive in 2025. The operating cash flow to net income ratio is strong at 6.7, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is lower at 5.6, suggesting room for improvement in cash flow management.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	21.41B	21.15B	19.58B	19.54B	18.83B	18.33B
Gross Profit	15.97B	15.79B	14.76B	14.84B	14.34B	14.11B
EBITDA	1.13B	1.27B	1.02B	1.25B	918.79M	990.51M
Net Income	338.02M	254.16M	225.27M	514.14M	423.42M	121.81M
Balance Sheet
Total Assets	18.97B	20.20B	22.02B	18.05B	17.34B	18.01B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.12B	2.56B	2.56B	5.29B	7.28B
Total Debt	1.06B	1.54B	3.67B	175.36M	125.93M	732.95M
Total Liabilities	4.70B	5.57B	7.46B	3.80B	3.55B	4.65B
Stockholders Equity	14.27B	14.63B	14.56B	14.25B	13.80B	13.36B
Cash Flow
Free Cash Flow	0.00	1.43B	-1.15B	-802.37M	-298.09M	2.41B
Operating Cash Flow	0.00	1.71B	-849.03M	-264.54M	101.72M	2.94B
Investing Cash Flow	0.00	442.01M	-2.41B	-2.23B	-1.29B	-1.00B
Financing Cash Flow	0.00	-2.60B	3.27B	-239.05M	-782.97M	424.17M

MRK Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9980, the sentiment is Positive. The current price of 92 is below the 20-day moving average (MA) of 97.85, below the 50-day MA of 96.22, and below the 200-day MA of 93.23, indicating a bullish trend. The MACD of 4.81 indicates Negative momentum. The RSI at 89.21 is Negative, neither overbought nor oversold. The STOCH value of 54.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9980.

MRK Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3123	72 Outperform	¥9.02B	7.11	―	2.75%	-4.76%	8.43%
9980	71 Outperform	¥13.78B	10.40	―	1.05%	6.19%	79.98%
3320	71 Outperform	¥10.72B	6.86	―	2.77%	-2.28%	36.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3571	56 Neutral	¥10.23B	36.03	―	5.32%	-1.19%	-87.79%
8127	48 Neutral	¥12.64B	83.43	―	3.35%	-8.02%	-59.42%
9885	44 Neutral	¥5.80B	-1.55	―	2.23%	-0.67%	-453.71%